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Should You Avoid Autodesk, Inc. (ADSK)?

Judging by the fact that Autodesk, Inc. (NASDAQ:ADSK) has experienced falling interest from the entirety of the hedge funds we track, logic holds that there is a sect of funds that slashed their entire stakes in the third quarter. Intriguingly, Stephen Mandel’s Lone Pine Capital sold off the biggest investment of the “upper crust” of funds monitored by Insider Monkey, totaling close to $308.4 million in stock. Israel Englander’s fund, Millennium Management, also dropped its holding, about $90.4 million worth of shares. These transactions are interesting, as total hedge fund interest dropped by 13 funds in the third quarter.

Let’s now review hedge fund activity in other stocks similar to Autodesk, Inc. (NASDAQ:ADSK). These stocks are Philippine Long Distance Telephone (ADR) (NYSE:PHI), Tiffany & Co. (NYSE:TIF), Grupo Financero Sntdr Mxco SAB de CV ADR (NYSE:BSMX), and Bunge Ltd (NYSE:BG). This group of stocks’ market caps resemble ADSK’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PHI 7 108885 1
TIF 36 376314 3
BSMX 10 22053 1
BG 28 1069577 -5

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $394 million. While Tiffany & Co. (NYSE:TIF) is leading the pack with 36 positions, Philippine Long Distance Telephone (ADR) (NYSE:PHI) is the least popular one with only 7 bullish hedge fund positions. Autodesk, Inc. (NASDAQ:ADSK) is not the most popular stock in this group, but it is not far behind Tiffany & Co with 32 long positions and it has also attracted a significantly higher investment from the hedge fund family: $2.08 billion at the end of the third quarter. Taking it all into consideration, we believe further research into both ADSK and TIF is necessary to identify the most suitable candidate for a long position.

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